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Rock and roll bands, (in)complete contracts and creativity

Author

Listed:
  • CEULEMANS, Cédric

    (Université Libre de Bruxelles, ECARES, B-1050 Brussels, Belgium)

  • GINSBURGH, Victor

    (Université Libre de Bruxelles, ECARES, B-1050 Brussels, Belgium and Université catholique de Louvain, CORE, B-1348 Louvain-la-Neuve, Belgium)

  • LEGROS, Patrick

    (Université Libre de Bruxelles, ECARES, B-1050 Brussels, Belgium)

Abstract

Members of a rock and roll band are endowed with different creativity. They match and eventually obtain credit for song writing as well as a share of the returns from sales. More creative members increase the probability of success but may also claim a larger share of the pie. In our theoretical model, the nature of matching (postive or negative assortative) as well as the covariation between the probability of having a “hit” and the dispersion of credits given to individual members are a function of the completeness of contracting. When members adopt a “gentleman’s agreement” to share credits equally, the covariation between the probability of a hit and the dispersion of credits is negative, which is the consequence of positive assortative matching in creativity. The data show that the relation between dispersion and success is significantly negative, and that rock bands are thus likely to sign incomplete contracts.

Suggested Citation

  • CEULEMANS, Cédric & GINSBURGH, Victor & LEGROS, Patrick, 2010. "Rock and roll bands, (in)complete contracts and creativity," LIDAM Discussion Papers CORE 2010074, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    • Handle: RePEc:cor:louvco:2010074
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    File URL: https://sites.uclouvain.be/core/publications/coredp/coredp2010.html
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    Cited by:

    1. Philip Hans Franses, 2023. "On the life cycles of successful rock bands," Quality & Quantity: International Journal of Methodology, Springer, vol. 57(5), pages 4693-4707, October.

    More about this item

    Keywords

    overlapping generations; resource management; common pool resource; spatial interdependence; strategic behaviour; cooperative behaviour;
    All these keywords.

    JEL classification:

    • H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
    • K11 - Law and Economics - - Basic Areas of Law - - - Property Law
    • Q20 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - General

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